Supreme Court orders NCLT rehear after AI created citation errors
The Supreme Court just threw out some major tribunal decisions after finding they were based on fake legal references made up by AI.
This all came up in a case between Jammu and Kashmir Bank and Essel Infraprojects.
Now, the court wants the National Company Law Tribunal (NCLT) to start over and hear the case again, this time, without any made-up citations.
Supreme Court calls citations AI hallucinations
Turns out, some of the legal cases quoted in the earlier orders didn't even exist: one example was a citation called State Bank of India v. Shree Ram Urban Infrastructure.
The Supreme Court said relying on these AI-generated "hallucinated" citations isn't okay for real-life decisions.
They've also asked the Bar Council of India to set up an expert committee to look into how AI is used in legal work, making it clear that human judgment still matters most in courtrooms.